Is Go Digit General overvalued or undervalued?

As of 2 June 2024, the valuation grade for Go Digit General has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its high ratios, including a PE ratio of 76.36, an EV to EBIT of 325.24, and an EV to EBITDA of 325.24. These figures starkly contrast with its peers, such as Life Insurance with a PE of 12.54 and Bajaj Finance Ltd. with a PE of 35.01, highlighting the disparity in valuation within the industry.
In comparison to its peers, Go Digit General's valuation metrics suggest that it is not only overvalued but also lacks the financial performance to justify such high multiples, evidenced by a ROE of 9.27% and a ROCE of just 2.13%. Furthermore, while the company's stock has outperformed the Sensex in the short term, with a 1-month return of 20.34% compared to the Sensex's 3.82%, this does not mitigate the overall overvaluation concern.